Server Power Supply Units Market Size, By Type (Open Frame Power Supply, Single Power Supply, Redundant Power Supply and Common Redundant Power Supply), By Application (Internet Industry, Government, Telecommunications, Financial, Manufacturing and Others), and Regional Forecast to 2034

SERVER POWER SUPPLY UNITS MARKET OVERVIEW

The global Server Power Supply Units Market size was USD 3.67 billion in 2025 and is projected to touch USD 7.57 billion by 2034, exhibiting a CAGR of 8.35% during the forecast period.

A power supply unit is an internal IT hardware unit that gives the correct voltage from the electricity source. It receives electricity in from an electrical outlet conserve and converts the current AC (alternating current) to DC (direct current). The recommended wattage for server PSUs is a minimum of 700w, but it varies with other components on your system. For calculating exact power consumption for your machine, you can use a power supply calculator.

The server power supply market has been witnessing an impressive surge as energy-efficient data centers start to pop up in various countries around the globe. The increasing demand for speedy data processing capabilities has led to the rise in cloud-based services adoption, in turn fostering growth in this industry. Businesses expanding their digital footprint will correlate to future increased need for dependable and powerful server power supplies. Trends in the market on server power supply stem from the developments of cutting-edge technologies like AI and IoT, which inherently require strong and efficient power supply systems to optimally function. In line with this, the increased emphasis on reducing the carbon footprint led to the introduction of energy-efficient server power supplies with a promising market opportunity for market players.

GLOBAL CRISIS IMPACTING SERVER POWER SUPPLY UNITS MARKET

Pandemic Surged Work from Home Culture Emphasized the Market Growth Positively

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The surge in demand for PSUs across various regions globally was brought about by the simple COVID-19 lockdowns that shifted companies into remote work. Other areas affected in some ways include education, and the overall extension of digital services has led to an increased demand for the expansion of data centers and cloud infrastructures. However, the investments made did accelerate the trend toward modular PSUs, redundant PSUs, and high-efficiency PSUs, especially with regard to AI-heavy datacenter applications. It would serve as a further catalyst in the server PSU market. Although it created production bottlenecks due to disruptions within supply chains, it accelerated a demand for data center capacity that was unprecedented and likely unsustainable. Both of these together pushed the market forward and ensured good long-range growth as well as intriguing innovation regarding efficiency and redundancy.

LATEST TREND

Advancements in Market Sales and Production was Observed with the Implications of AI

Adverse effects are predominant in countries such as Brazil and India, which politically motivate international monetary support. AI's huge impact on the server power supply market has brought transformation in the industry at large. The server power supply system integrated with AI will reduce energy consumption, operational costs, and improve power distribution optimization. The predictive analytics capability of AI enables proactive maintenance, which will promise improved system reliability, reduced downtime, and minimized operational costs in servers. The machine learning algorithms within AI allow adaptive power management systems which have the ability to increase or decrease power supply corresponding to the real-time server load, often with substantial energy savings realized in doing so. Therefore, the adoption of AI technologies within the server power supply market will increase market innovation, sustainability, and their development.

SERVER POWER SUPPLY UNITS MARKET SEGMENTATION

BY TYPE

Based on the type, the market is sectioned into open frame power supply, single power supply, redundant power supply and common redundant power supply.

• Open Frame Power Supply: It's not usually boxed power modules; instead, they are used in customized server hardware or modular applications for data centers. They are found in blade servers, telecom servers, and edge-computing deployments, and they are now increasingly being adopted for use in custom and embedded-server applications.
• Single Power Supply: Standard power supply units without backup or redundancy. Generally used in tower servers, entry-level rack servers, or for temporary setups. Suitable for no-critical applications or small businesses.
• Redundant Power Supply: Using multiple PSUs within the same server to provide failover protection for power. Used mostly in hyperscale data centers, AI clusters, and financial/healthcare systems, and increasingly in 5G core network deployments.
• Common Redundant Power Supply: Falling demand in 2020 because of factory shutdown and reduction in industrial activity. Recovery is gradual in 2021 through 2025. Metal fabrication, welding and cutting, chemical processing, calibration gases among prime areas of application.

BY APPLICATION

Based on the application type, the market is fragmented into internet industry, government, telecommunications, financial, manufacturing and others.

• Internet Industry: Used in hyperscale data centers, cloud platforms, AI/ML workloads, and content delivery networks. It is compliant with the Common Redundant Power Supply (CRPS) standards.
• Government: This includes defense applications such as public data infrastructure, surveillance, and e-governance servers. Usually installed in classified or air-gapped server rooms, stability, long life cycles, and conformity with local manufacturing are priorities.
• Telecommunications: Supportive of all base stations, edge computing, core network servers, and network equipment. High growth due to the global rollout of 5G, the expansion of edge data centers, and increases in IoT traffic and bandwidth demands.
• Financial: This includes all data center banking trading platforms, gateways, and regulatory systems. Very strong growth, especially evident in fintech adoption as well as within blockchain/data ledger systems and infrastructure development of mobile banking.
• Manufacturing: Powers industrial servers, MES (Manufacturing Execution Systems), SCADA systems, and factory automation platforms. This vertical is projected to witness steady growth due to the rise in smart factories, IIoT, and digital twins.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

DRIVINGFACTORS

Advanced Demand for Energy Efficient Supply Units to Expand the Market Sales and Production

The market is driven by the high demand in energy-efficient power supply units. Focusing on the reduction of carbon footprints, businesses would invest in server power supply units that are energy-efficient. The energy-efficient supply units not only minimize energy consumption but also reduce operational expenses, making them fascinating for enterprises. Demand for server supplies for high wattage with improved efficiency and thermal management is required due to the emergence of high-performance computing workloads that harness AI. Therefore, the modular power supply segment will gain momentum since this approach tends to be flexible and easy to maintain. The design innovation in power supply, which incorporates digital monitoring and remote management, enables data center operators to optimize energy usage and predict maintenance needs in advance.

Expatiating Boon in the Market was Witnessed with Rise in the Cloud Solutions and IT Industry

Another factor driving the market is growing adoption of cloud-based services. More businesses add their business activities to the cloud; therefore, it is expected that the need for robust server power supply units will increase. This ensures that the server can manage the heavy load of data for cloud computing so that operations run smoothly. The proliferation of digitalization and increased amounts of data generation also drives much of the market. When businesses generate a greater amount of data, they also require more servers to store and process that data. This will, in turn, be expected to increase the demand for server power supply units.

RESTRAINING FACTOR

High Initial Investments to Downturn the Market Growth

High initial investments on state-of-the-art power supply systems are likely to act as a hindrance for the market. Data center-grade PSUs are units with high wattage and high efficiency (80 Plus Platinum/Titanium) and come at an exponentially high price than that of consumer power supplies. This entails huge financial resources for the developing and deploying such systems, which many of the small and medium-sized enterprises (SMEs) will not have. This financial constraint is expected to slow down the advanced server power supply system’s adoption rate, thus restraining the market. The high initial investments need to retard the development of the worldwide Server Power Supply Units market growth.

OPPORTUNITY

Clean Energy and Elimination Towards the Carbon Footprints to Create Emerging Opportunities in the Market Growth

Emerging cleanroom data centers would provide opportunities for the market. Green data centers, now getting increasingly popular among organizations, would need energy-efficient power supply units, and thus organizations turning towards sustainability are expected to increase the demand for such units in the years ahead. The market of Server Power Supply Units is getting more investment for green technologies relating to sustainability becoming core issues. Development of power supplies whose energy-blocking devices consumer renewables and recyclable materials is also under development. This encourages low-carbon data center infrastructure; thus, manufacturers are creating PSUs that promise high efficiency with the least environmental effects. Therefore, the market would continue to grow as per the international policies and corporate responsibility initiatives around the globe.

CHALLENGE

Lower Demand was to be Seen with the Shortage of Skilled Personnels

The shortage of trained personnel in the industry is expected to restrain the market. The operations and maintenance of these systems require specialized skills and knowledge; however, there are very few such professionals in the market. The result would be, by all likelihood, restricted deployment and inefficient application of server power supply systems, thus constraining the market.

SERVER POWER SUPPLY UNITS MARKET REGIONAL INSIGHTS

• Asia Pacific

Rapid urbanization, technological advancements, and industrial transformations in China have generated a huge demand for server power supplies due to which Asia Pacific dominated the server power supply units market share in 2023. The booming IT structure in the region, together with an increase in digitalization in other countries like India, Japan, and South Korea, adds significantly to the rising demand for server power supplies. Companies need strong servers to manage and process many megabytes of data generated every day, plus substantial storage solutions, which led to this massive surge in uptake.

• Europe

Europe serves as a very important regional hub when it comes to the server PSU market. While Europe's data center growth continues, especially driven by AI/cloud infrastructure, it has very strict regulatory requirements, which all combine to create a very good demand for premium and energy-efficient PSUs. Though such factors challenged a high-cost scenario and supply chain fragility, Europe's mature market and sustainability focus make it conducive for the above innovations of digital, modular, and green PSUs.

• North America

By virtue of the presence of a lot of tech and data-heavy enterprises, North America is going to see very strong momentum in the forecast period as the world gets increasingly more data traffic much more in this region. The United States particularly is well positioned to be a key contributor in this regard because of rapid technological advancement and the presence of leading server power supply manufacturers. In addition, demand for the mostly increasing cloud-based services, Internet of Things, and AI applications is likely to see a significant increase in this area, leading to substantial expansion of the server power supply market. In addition, the demand for cloud-based services, Internet of Things, and AI applications is likely to rise notably in the region, which paves the way for a sizable expansion of the server power supply market.

KEY INDUSTRY PLAYERS

Major Market Players Embrace Procurement Techniques to Remain Competitive

Conspicuous companies in this market incorporate well-established, fiscally steady Server Power Supply Units arrangements, services suppliers, and administrative bodies. These companies have been working within the advertise for a few a long time and have an expanded item portfolio and state-of-the-art innovations. These players have received different development procedures, such as organizations, assertions and collaborations, modern item dispatches and upgrades, and acquisitions to expand their impression within the Server Power Supply Units market.

The increment within the utilization of progressed innovations in office administration administrations beside the ceaseless venture to upgrade benefit capabilities are major steps embraced by industry players to extend their market share. These major players are continually creating their fragments and growing their businesses. These companies are joining up with businesses majorly included in innovations such as cloud platform, an easy-to-use framework that unites all the innovation and applications utilized to run buildings in one put.

LIST OF COMPANIES PROFILED

• Murata (Japan)
• China Greatwall Technology (China)
• Shenzhen Honor Electronic (China)
• Delta (China)
• Acbel (China)
• Enhance Electronics (China)
• Compuware (China)
• Gospower (China)
• Lite-On (China)
• Chicony (China)
• ZIPPY TECHNOLOGY (China)
• Bel Fuse (U.S.)
• FSP (China)
• Sure Star Computer (China)
• Artesyn (U.S.).

KEY INDUSTRY DEVELOPMENTS

July 2025: Santa Clara, California. In creating electric vehicle (EV) charging stations, the 3PH-EV Series straight and free from reluctance transformers provide an exclusive and credible power distribution solution for increased demand eMobility applications capable from 45KVA to 450KVA. This is a newly introduced series from a renowned global manufacturer of power-protecting and connecting electronic circuits, Bel Fuse Commercial, within its Signal Transformers range.

REPORT COVERAGE

The Server Power Supply Units market is characterized by seriously competition, with various players competing for showcase share. The competitive scene incorporates a blend of built-up companies and rising new companies, each advertising a run of instruments with shifting highlights and capabilities. The showcase is driven by development, with companies ceaselessly improving their items to supply way better client involvement, more precise approval, and integration with other advancement apparatuses. The competitive competition is assisted escalates by the presence of both free and paid apparatuses, catering to distinctive fragments of clients.